28
Apr
By First Rate Financial Group
Mortgage

Do You Want To Own A Second Home?

Do You Want To Own A Second Home?

Build Wealth More Quickly

One of the first benefits of owning a second home is that you can build wealth more quickly. One of the major benefits of investing in real estate is that you can leverage the bank’s money to help you build wealth. Even though you may have only put down 20 percent, 100 percent of the property’s appreciation benefits you, as you own the home. If you own a second home, you can build wealth more quickly because you are doing this with two separate properties.

Enjoy Switching Up The Scenery

Many people like to own a second house because it allows them to switch up the scenery. If you live in the northeast, you may want to own a second home in the Southeast. If you live on the coast, you may want to purchase a second property in the mountains. That way, when you are ready for a change of weather or scenery, you can simply go to your second home. 

Generate Another Income Stream

Owning a second home allows you to generate another income stream. When you are not using the house, you can rent it out to other people. Or, you might be interested in the stability of a long-term rental. This is something that you can discuss with a real estate professional. 

Consider Owning A Second Home

In the end, there are numerous benefits that come with owning a second house. If you are looking for a way to diversify your investments, or if you are simply looking for a bit more flexibility, you should consider owning a second home as well. A professional can help you plan your finances accordingly, so you can put yourself in the best position possible to be successful. 

26
Apr
By First Rate Financial Group
Mortgage

Exploring Homebuyer Assistance Programs: Assessing the Options Available

Exploring Homebuyer Assistance Programs: Assessing the Options AvailableThe traditional rule of thumb is that you should put down 20 percent of the cost of the house if you decide to become a homeowner. Unfortunately, the thought of saving 20 percent of the price of a home for a down payment can be daunting for people who are trying to buy a house for the first time. If you purchase a house worth $250,000, this means that you would have to save up $50,000 to put down. Fortunately, there are multiple down payment assistance programs that can make it easier for people to afford a home. 

The Traditional First-Time Homebuyer Assistance Programs

If you are purchasing a home for the first time, you might be able to purchase a house for as little as 3.5 percent down. This comes in the form of an FHA loan. Even though there is a chance you might be asked to pay private mortgage insurance, the idea of putting 3.5 percent down immediately makes a house look more affordable. 

Programs For Repeat Homebuyers

Even though there are plenty of programs available for first-time home buyers, there are options available for repeat home buyers as well. For example, between 35 and 40 percent of all down payment assistance programs have been designed for repeat home buyers. This means that regardless of where you are at on your journey, there might be programs that can make it easier for you to afford a home. 

Programs Are Available For Public Servants

If you work in a service profession, there might be programs specifically designed to help you afford a home. For example, there is a specific program called Teacher Next Door that makes it easier for teachers to afford a home. If you are a first responder, veteran, or active-duty soldier, there are specific programs designed to make it easier for you to afford a home as well.

Explore All Options Available

Ultimately, these are just a few of the many examples of programs that are available that can make it easier for you to afford a home. Even if you do not have the money to put down 20 percent, there are programs that could make it easier for you to purchase a house. 

 

20
Apr
By First Rate Financial Group
Mortgage

A Checklist Of Documents You Need To Refinance Your Mortgage

A Checklist Of Documents You Need To Refinance Your MortgageIf you want to save money on your mortgage, you might think about refinancing. Before you can complete the refinancing process, there are several documents you need to have. Make sure you have all of these documents organized before you go through the refinancing process.

Basic Personal Information

You need to have documents that prove your basic personal information. This includes your name, current address, and phone number. There are plenty of documents you can use to prove this information, and your current lender probably already has this on file if you are using the same lender to go through the refinancing process. 

Income and Debt Documents

You also need to have documents that verify all of your current income or debt. If you are a wage-earner, you should have at least one recent pay stub. You should also have tax returns and W2 forms from the past two years.

Make sure you have recent asset or bank statements as well. This could include retirement accounts, checking accounts, savings accounts, and investment accounts. You will probably need the most recent quarterly statement for monthly statements going back at least two months. 

Any Additional Letters and Documents

There are several other letters or documents you might need as well. If you receive alimony payments or child support, you will need to have divorce decrees verifying this information.

If there are any questions about your credit history or gaps in your employment, you will need to have letters explaining these issues. That way, the lender will be reassured that you can repay the home loan. If you receive pension payments or social security payments, you should have an award letter specifying the size of the payments and how long they are going to be paid.

You also need to have a deed showing that you are the rightful owner of the home and a document showing that you have an active homeowners insurance policy with appropriate coverage.

Get Your Documents Organized for the Refinancing Process

Once you have all of these documents, you should be ready for the refinancing process. You should work with a professional who can walk you through this process from start to finish.